What makes a company poorly run? Usually management. Always financial results. For 24/7 Wall St. readers, the stock price matters a great deal.

Based on its recent quarterly financial statement, the online education company 2U had such poor earnings that its stock dropped almost 60% in one day. And the share price fell below $1, making it a penny stock. These are generally stocks investors avoid, and most institutions never buy. The results were such, along with the reaction, that people should question whether 2U can survive.

The company’s CEO Christopher Paucek had a shocking reaction to the figures: “These results did not meet our expectations.” The numbers were disappointing and he may not keep his job.

Oddly, 2U considers itself an industry leader in a sector with a total revenue of $74 billion. It does not give data to support that. It said it had a clear path to adjusted EBITDA, while the results show otherwise.

Revenue for the company was $230 million. That compares to $232 million the year before. It lost $47 compared to a $122 million loss in the same period the year before. 2U said it was focused on growing revenue and profits. The figures show otherwise.

Paucek is also a co-founder, which makes the company’s stewardship even more important.

Investment bank Cantor Fitzgerald dropped its rating from “overweight” to “neutral.” These analysts wrote that the company’s “core degree business is deteriorating.”

One thing Wall Street does not like is a negative surprise. For most of the year, 2U’s stock did relatively well. It outperformed the market from January to mid-March. Then, its performance dropped below the market. So far this year, it is down 84%, which is so bad it is hard to find any companies that have done so poorly.

Based on its financial results and the reaction. The chance the 2U will recover is near zero. (These are the companies with the best reputations.)

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